Nigeria Experiences Slight Dip in Headline Inflation Rate
Nigeria’s headline inflation rate decreased marginally to 15.91% in June, down from 15.93% in May, according to the National Bureau of Statistics (NBS). This slight decline offers a modest indication of easing price pressures, even as food prices continue to climb.
The latest Consumer Price Index (CPI) report, released by the NBS on Wednesday, highlights that the current inflation rate is significantly lower than the 25.29% recorded in June 2025, indicating a year-on-year decrease. Compared to May’s figures, the inflation rate fell by just 0.02 percentage points.
Additionally, month-on-month inflation rates revealed a slowdown, decreasing from 1.75% in May to 1.66% in June. This suggests a deceleration in the pace of price increases, reflecting improving market conditions within the economy.
Food Prices Continue to Burden Households
Despite the overall inflation rate showing signs of moderation, food prices persist as a burden on household finances. The NBS reported a food inflation rate of 17.52% year-on-year for June, significantly lower than the 25.41% rate seen in the same month last year. However, the month-on-month food inflation increased to 3.75% in June from 2.98% in May.
The NBS attributes this rise to higher prices for a variety of staple food items, including fresh pepper, tomatoes, crayfish, beef, and various types of flour. Notably, food and non-alcoholic beverages contributed 6.37 percentage points to the overall headline inflation rate. Other significant contributors included restaurants and accommodation services (2.06 percentage points), transportation (1.70 percentage points), and housing-related expenses (1.34 percentage points).
Core Inflation Maintains Moderate Levels
In June, the core inflation rate, which excludes volatile agricultural and energy costs, stood at 15.92% year-on-year—down from 25.41% recorded in the same period last year. On a month-on-month basis, core inflation also saw a reduction to 1.66% from 1.94% in May.
The report noted that the average headline inflation rate over the 12 months ending in June 2026 was 17.63%, a significant decline from 29.82% recorded in June 2025. The annual average food inflation rate followed a parallel trend, declining to 16.42% from the previous year’s 31.93%. Urban areas reported an inflation rate of 16.08%, whereas rural areas experienced a lower rate of 15.48%.
Regional Variations in Inflation Rates
The report also underscores notable discrepancies in inflation rates across various states. Niger State experienced the highest annual inflation rate at 42.23%, followed by Kogi State at 41.59%, and the Federal Capital Territory at 39.91%. On the other hand, Imo State reported the lowest annual inflation rate at 19.47%, with Ebonyi (20.79%) and Katsina (21.87%) following closely behind.
In terms of food inflation, Kogi State recorded the highest year-on-year increase at 53.02%, with Niger and Benue states showing rates of 43.83% and 40.83%, respectively. Conversely, the lowest food inflation rates were observed in Katsina (19.15%), Rivers (23.81%), and Imo (24.60%).
The June inflation figures emerge as Nigeria grapples with the repercussions of ongoing economic reforms, including adjustments to exchange rates and rising energy and transportation costs. These factors have collectively contributed to increased consumer prices over the past two years, shaping the financial landscape of the nation.
